EULAs: The skinny on end-user license agreements

We’ve all experienced the rush of excitement that comes from purchasing new apps & software. You tear into the physical packaging (if it’s there) and hurriedly rush through the steps for set up. One of these steps — an end-user license agreement —requires users forfeit their individual rights to use the product. So, what exactly is a EULA, how binding are they, and how should you handle them? Let’s discuss.

What is an end-user license agreement?

An end-user license agreement (EULA, for short) is a digital contract detailing a consumer’s rights when they use a product. Also referred to as a software purchase agreement, EULAs limit the liability of the licensor, and restrict a user’s legal recourse should issues arise.

EULAs are are dense documents which often rival the length of novels. They cannot be read and understood quickly; licensors know this, and they exploit the fact that almost no one reads EULAs. This gives businesses the room to include terms that undermine users best interests, including privacy.

Length is one major drawback, but equally concerning is timing. In nearly every instance, users don’t receive EULAs until after they’ve purchased and opened a product. That positions EULAs as mere afterthoughts. By the time a user sees a EULA, they simply click accept and never look back. And agreeing to the complex terms only requires the click of a button. Because an actual signature is rarely required, users don’t treat EULAs as seriously as they otherwise would. Sometimes, EULAs are even entered into simply by using a product.

How should I approach EULAs?

In the ideal world, you would read every EULA you agree to. But not everyone has the amount of time required to do so. You should, at the very least, skim through EULAs for significant purchases. Some companies, such as Apple, post their software license agreements online. This allows you to review significant parts of an agreement before you buy a product.

If a EULA is available online, search the document for significant details on “liability” and “privacy.” This will let you allow you to assess the risk of buying the product. Sadly, if you aren’t comfortable with the terms, there’s no way to change them. Users have no negotiation power with of these agreements.

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